Still no joy for the first time buyers

THE housing market may have fallen for many months now but as we report today, bargains are few and far between in North Wales and the vast majority of properties remain out of reach of first-time buyers.

THE housing market may have fallen for many months now but as we report today, bargains are few and far between in North Wales and the vast majority of properties remain out of reach of first-time buyers.

Those of us who rejoice when property prices spiral inexorably upwards should ask ourselves why we do so. Do we take similar pleasure from the rising cost of a loaf of bread?

For home owners seeking a bigger property, a rising market is a headache because while their own place might be worth an extra 15% they will probably have to fork out around the same percentage for the place they purchase. And as those who are good at maths will spot, 15% of a bigger amount is more cash to fork out than the same proportion of a smaller sum.

But for those yet to climb the property ladder the prospect of prices rising again must fill them with dread. It is they who lose out enormously when prices go up and up.

They already have to fork out huge deposits, probably beyond their reach without help from the bank of mum and dad. And yes, if they mount that hurdle, there is the welcome prospect of an affordable loan at historically low interest rates.

But if, as estate agent Tim Goodwin points out, a derelict house in Bangor with a hole in the roof and pigeons roosting upstairs can fetch £70,000 at auction, what hope is there for first-timers should the market start rising?

It was former PM Tony Blair who once quite rightly said that we could not base our economy on people selling houses to each other. It’s true – and those who profit from rising prices are in the happy state of already owning a house. Their good fortune is at the expense of others waiting endlessly simply to buy in the first place.

It is a sobering thought that for all the much-publicised falls in the housing market, almost nothing has come down to be truly within reach of the first-time buyer.

Much of the younger generation remain unable to buy until they reach middle age. That doesn’t say much for Britain’s claim to be a wealthy, prosperous nation.